Homeowners insurance of either a single family home or a condominium is generally in place to guard against a catastrophic loss like a fire or a broken pipe that floods the home or a windstorm that takes part of the roof. But because condominium ownership is shared with the Homeowners Association there are significant differences in how much coverage you may need.
A condo is partially owned by the Condo Association and they carry insurance for their portion of the building. However, you are responsible in most cases for everything from the studs in. That means the drywall, floors, cabinets, trim, window casings, doors etc. But how do you determine what your share of the rebuild cost will be?
How to Determine Building Value Condominium
Some agents just guesstimate and assign an amount of twenty-five or thirty thousand dollars. Some will try to work it out on a price per square foot calculation. But to be safe using a rebuild calculator that most insurance companies have available then dividing the estimate in half seems like a good idea. It is always better to have more coverage than necessary rather than not enough when you need it.
Other condo insurance considerations are contents replacement, liability, loss of use, and medical payments. These are no different than other homeowners policies. And the amounts are generally standardized based on the value of the home. The one coverage that should be looked into closely is the loss assessment coverage.
Loss assessment coverage is used when the HOA must charge the homeowners for expenses not figured into the normal operating costs covered by the yearly dues. For example, there is damage to the pool that the HOA’s insurance does not cover. The repair will cost tens of thousands of dollars. The HOA will assess each resident homeowner a portion of that cost. If it is more than your insurance deductible (typically in Florida the loss assessment deductible is $250) you can be reimbursed by your homeowner’s insurance for the balance under the Loss Assessment coverage.
If you would to like to discuss your options for condominium insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.